The report addresses three of the country’s highest priority problems: improving habitat, alleviating poverty and reducing crime. The report finds that to successfully resolve these problems, the economic situation and the degree of public support of reform are crucial. It thus describes in some detail the process of implementing economic reforms and the influence of society on socio-political change. It goes on to look at the effects of democratization on human development and reveals the connections between economic reform and human development issues, with the problems of poverty and human habitat chosen as priorities for special analysis. The report notes how useful the 1995 NHDR proved to be in compiling the 1996 budget and in the formulation of President Akayev’s election campaign platform which let to policies in which human development issues had a high priority. The authors hope that the 1996 report will be similarly beneficial in the future, so that human development issues receive adequate financial provision in the 1997 national budget.